Under Sections 15 and 16 of the MSMED Act, a buyer must pay a registered micro or small supplier within the agreed period, at most 45 days from acceptance (15 days if nothing is agreed). Delay attracts interest at three times the RBI bank rate, compounded monthly. The free consultation calculates your entitlement, checks your Udyam status and proof, and recommends notice, MSME Samadhaan or both. Nothing upfront; 30% on recovery.
Are you covered?
- You were registered on Udyam as a micro or small enterprise at the time of supply (medium enterprises are not covered by Sections 15 to 18)
- You supplied goods or rendered services to a buyer (the buyer's size does not matter; government buyers are included)
- The payment is beyond the agreed period or 45 days from acceptance, whichever is earlier
Traders registered on Udyam have historically had limited access to the Council route; the expert will check the current position for your registration category.
How much are you owed?
Principal plus interest at three times the RBI bank rate, compounded monthly, from the day after the appointed day until payment. On a delay of a year or more the interest is substantial. Use the MSME interest calculator for an estimate; the consultation confirms the appointed day from your delivery and acceptance records, which is where disputes arise.
Your three levers
- Advocate's notice claiming principal and statutory interest. Sent within 24 hours of your documents. Many buyers pay the principal at once to stop the interest.
- MSME Samadhaan. An online claim at samadhaan.msme.gov.in to your state's Facilitation Council, which conciliates and then arbitrates with a 90-day target; a buyer must deposit 75% of the award to appeal. Filed from your state, wherever the buyer is.
- Section 43B(h). The buyer's auditors will insist that late payments to micro and small suppliers are disallowed as expenses; a notice that points this out often reaches the CFO.
What to bring and what happens next
Bring your Udyam certificate, invoices, delivery or acceptance proof, and the buyer's messages. The expert confirms coverage, computes the claim and recommends the lever or combination. If you decide to go ahead, a dedicated advocate is assigned within 24 hours of your complete documents and the legal notice goes out as an e-notice, followed by registered post. Nothing is charged upfront. If you proceed, FundRaksha Legal charges 30% only on the amount actually recovered; if nothing is recovered there is no success fee. Court fees, where a matter is filed, are borne by you and told to you in advance.
Find your Council on the state pages, for example Tamil Nadu or Uttar Pradesh; see SME debt collection in Coimbatore for a city view; and the MSME Samadhaan consultation for the filing process in detail.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.